FREQUENTLY ASKED FRANCHISING QUESTIONS (FAQ)

What does it cost to franchise a business?

It depends upon the nature and complexity of the business, but legal, developmental and marketing costs can easily exceed $250,000.

We have already started our franchising effort – would Franchising Ventures Group be willing to invest in our business?

We are not passive investors. We provide the capital only for franchise programs that we operate. If you want to consider that approach, go to the section titled Getting Started.

Can we start our own business with revenue from franchising?

Franchising is not a source of venture capital for the franchisor. Franchising fees are paid by the franchisee in return for numerous things including a proven business plan and proven methods of operation, not to help you start your business.

How long does it take to launch a franchise program?

Again, it depends upon the nature and complexity of the business, but 120 days is adequate in most cases to reach the point of beginning to market franchises. Other issues come to play such as the time required to prepare the training manuals, marketing materials and other materials.

How can we be certain the program will succeed?

There are no sure things. You need to carefully look at whether your business is solid, what the competitive factors are, whether it has a predictable future, whether it can be readily taught to others, and whether your franchisees can achieve profitability within a reasonably short time frame.

Why can't I just license my business and avoid all the hassle of franchising?

First, please understand that franchising is a form of licensing. But if you mean, just license your name and trademarks, that is a possibility but it is viable only for those who have an established brand name, and it leaves you with little control over those to whom you grant the license. That form of licensing has nowhere near the potential profitability of franchising.

If I join forces with Franchising Ventures Group, how do I get rewarded?

Exactly in the same way that Franchising Ventures Group does – from the revenues of the franchise program. And keep in mind, you also retain 100% ownership of your current business.

How much time do I have to spend on this?

That depends upon the amount of documentation you already have, how well developed your business system is, and whether you are willing to make an effort to communicate effectively and forthrightly with our people to help them create the franchise program.

And after its launched, I just sit back and do nothing?

No – you have to provide ongoing knowledge input and continue – in your own business – to develop new sales and marketing concepts, and new products and services, to share with the franchise network that we build.

Will the information that I give to Franchising Ventures Group remain confidential?

Yes. We will sign a Non-Disclosure Agreement initially, and if we reach an agreement to develop a program, then further safeguards will be built into the contracts between your company and ours. The confidentiality of your information will be respected.

Franchising Ventures Group is happy to address any questions, concerns or thoughts you have so that we can keep the small business community better informed on franchising. If you have any questions visit our contact page for the appropriate email address and phone numbers.